Capital & Strategy

The Capital & Strategy portion of the capital stack provides the bank with a view of the projected Balance Sheet and Income Statement in different economic environments. Additionally, the Invictus Capital Stack projects all of the bank’s capital levels subject to Basel III regulations and provides the institution with a forward-looking, sophisticated, and compelling case for safely increasing the bank’s balance sheet by setting optimal capital levels, verifying concentration policies, and estimating FreeCapital™.

The Capital Stack deploys a method of capital stress testing to evaluate the bank’s capital adequacy. By following the framework utilized by the largest banks in the United States, we can provide effective challenge to overly aggressive regulatory oversight or simply evaluate how much ‘dry powder’ the bank’s balance sheet contains.

FreeCapital™

Stress Capital Buffer (think about graphics…): Every single bank in the country has a uniquely ‘optimal’ capital level. Do you know yours? The Capital & Strategy portion will define your stress capital buffer, which can ultimately be translated to your optimal capital requirement. Large banks don’t think they’re overcapitalized… they know it. We’ll use the same methods they use to create a compelling case to safely increase your balance sheet capacity.

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Concentration Policies

Every bank has concentration policies and limits. Very few have a compelling case for them. The Capital & Strategy portion allows you to test your concentration policies in real time. You can use it to validate your current levels, or even set the policy levels. Risk managers can rest-assured that their policies are in complete alignment with the bank’s capital.

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Stress Capital Buffer

Every bank has concentration policies and limits. Very few have a compelling case for them. The Capital & Strategy portion allows you to test your concentration policies in real time. You can use it to validate your current levels, or even set the policy levels. Risk managers can rest-assured that their policies are in complete alignment with the bank’s capital.

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FreeCapital
Concentration Policies
Stress Capital Buffer

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